Prerequisites for realizing EHR system in Japan

On July 6, the Japanese Government's IT Strategic Headquarters
announced the "i-Japan Strategy 2015". Along with the areas of
"e-government and e-municipality" and "education and human resources",
the strategy has identified "healthcare and medicine" as a top priority
area and set a goal of constructing a Japanese version of the Electronic
Health Record (EHR) system by 2015. The system is intended to reduce
medical malpractice, establish lifetime electronic medical and
prescription records for individual patients and facilitate
epidemiological use of anonymized healthcare data. The EHR system is to
be built upon Electronic Medical Record (EMR) systems adopted by
individual medical institutions, but the rate at which EMR systems have
penetrated in Japan has been slow. Thus, our first step toward the
establishment of the Japanese EHR system would be to eliminate the
barriers hindering the penetration of EMR systems.

EMR is a system for storing medical records within a medical
institution in order to improve work efficiency and the quality of
medical services. Medical institutions store these records by using
medical information technologies such as electronic patient files. EHR
is a system that collects such records from various institutions and
anonymizes them so that they can be shared among institutions. Thus,
well-organized EMR systems are prerequisite infrastructures for the
establishment of an EHR system.

In the Grand Design for Medical IT Application announced in
2001, the Government declared that 60% of hospitals with more than 400
beds and 60% of clinics should adopt the use of electronic patient files
by 2006; however, only 32.3% of hospitals with more than 400 beds and
8.5% of clinics have actually implemented the system, falling far short
of the targets. The low adoption rates indicate that Japan has not yet
established the EMR infrastructure necessary for the EHR system.

Chart 1 shows the domestic trend in healthcare IT investment,
which is relevant to EMR establishment. Although the level of investment
has been gradually increasing, the figure for FY 2007 was 367 billion
yen, representing a mere 1.1% of national medical expenditure. In the
U.S., where the construction of EHR is making steady progress, standard
medical institutions invest 2.5-3% of their revenues in healthcare IT,
and some institutions even devote over 5% of their revenues to this
area. In order to emulate the success of the U.S., Japan needs effective
policies in order to double investment in healthcare IT.

This doubling of investment cannot be achieved by simply
incorporating the required financial resources into medical fees.
Regarding healthcare IT investment, the financial burden is largely
imposed on acute hospitals while the financial benefit goes to other
institutions sharing the patient records. In the situation where
individual institutions are run separately, acute hospitals see little
incentive to continue making investments. In order to encourage
healthcare IT investment in Japan, we need to facilitate the
establishment of integrated healthcare entities, i.e. the integration of
acute hospitals with other medical institutions.